Highlight Mitrajaya 2Q net profit up 70% on higher contribution from construction unit, South Africa investment

Highlight
Mitrajaya 2Q net profit up 70% on higher contribution from construction unit, South Africa investment

KUALA LUMPUR (Aug 11): Mitrajaya Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit rise 70% to RM23.09 million or 5.75 sen per share in the second quarter ended June 30, 2015 (2QFY15) from RM13.58 million or 3.45 sen per share a year ago, on higher contribution from its construction division and South Africa investment.
Revenue for 2QFY15 jumped 80.5% to RM243.21 million from RM134.72 million in 2QFY14.
In a filing with Bursa Malaysia today, Mitrajaya said its construction division was the major contributor to the increase in the group's revenue and pre-tax profit in 2QFY15, which rose 108.9% and 119.3% respectively.
"It was attributable to the higher recognition from new projects secured since last year," it said.
"Our property project in South Africa also contributed higher revenue and pre-tax profit of RM9.91 million and RM4.02 million respectively, representing an increase of 538.3% and 5567.6% compared with 2QFY14.
For the six months period (6MFY15), Mitrajaya's net profit grew 48.9% to RM36.49 million or 9.17 sen per share from RM24.51 million or 6.22 sen per share a year ago.
Revenue in 6MFY15 rose 69.5% to RM404.8 million compared to RM238.89 million in 6MFY14.
Going forward, Mitrajaya expects its financial performance for the financial year ending Dec 31, 2015 (FY15) to be strong.
"The construction division will contribute significant high revenue and pre-tax profit for FY15 as works on existing on-going projects are progressing well from the current outstanding order book of RM1.75 billion.
"Our investment in South Africa is also expected to record a significant growth in revenue and profit for FY15. The unbilled sales currently stands at Rand 98.57 million which will be recognised progressively by end of this year," it added.
The group, however, expects the property division to record a lower growth for FY15 as the existing on-going project (Wangsa 9 Residency) is currently at initial construction stage eventhough the project has achieved satisfactory take up rate.
Mitrajaya (fundamental: 1.7; valuation: 1.4) shares closed 5 sen or 2.92% higher at RM1.76 today, bringing a market capitalisation of RM729.55 million. 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)